ENERGY STAR®:

Overview and Strategic Brand

Management

Sam Rashkin
National Director, ENERGY STAR for Homes
U.S. EPA

CEE WINTER PROGRAM MEETING

JANUARY 15, 2008
 Today

• Success to date; what it means for tomorrow

• Program foundation
• Outreach: New PSA campaign, other efforts
• Products update : new specs, new initiatives
• Residential update: new and existing homes
• Commercial / Industrial update
Environmental ‘Brand’ Success
Builds Upon Intersection of Interests

Environmental
Protection

Consumer
Manufacturer/Retailer Preferences
Interests

Cost-Effective
No Sacrifice in
Utility Performance
Program
Sponsor
Interests

Consumer is Key
ENERGY STAR
Brand Promise and Key Principles
• Protects the Environment
through superior energy efficiency

• No Tradeoffs
in performance or quality

• Cost Effective
(2nd price tag)

• Source of Authority
Govt. backed symbol providing valuable, unbiased information

• Binary
(Y/N)

• Power of the individual

to make a difference
ENERGY STAR
Across the Marketplace

Residential: Comm & Ind :

Labeled Products Corporate Energy Management
• 50+ products • benchmarking, goals, upgrades
• 2,000+ manufacturers (management, systems vs. widgets)
• whole building label for excellence
Labeled New Homes • sector focuses
• ~20-30% more efficient • technical assistance

Home Improvement Labeled Products

• beyond products • plug loads, not system components
• ducts / home sealing
• whole home retrofits Small Business

International partnerships – Canada, EU, Japan, etc

ENERGY STAR
Accomplishments
In 2006, Americans with the
help of ENERGY STAR:

• 37 MTCe
GHG emissions prevented = ~25 million vehicles

• $14 billion
saved on energy bills

• 170 billion kWh

lower energy use – almost 5% of US electricity sales

• 1/3 total US GHG

emissions reduction from EPA’s CCP’s
ENERGY STAR Program Success
• 70%+ Public awareness
• 12,000 organizations engaged in manufacturing,
delivery, and adoption

• 2.5 billion+ qualified products sold to date

Environmental
• ~850,000 new homes Results
Positioned to
• ~12% of new homes starts Double
• 60,000+ buildings benchmarked over next
10 Years
 Large Environmental Benefit

70 DOE Appliances

DOE Lighting (CFLs)

GHG Reductions (mmtce)

60
EPA Lighting
50
EPA HVAC

40 EPA Other

EPA Appliances
30
EPA Consumer Electronics
20
EPA Resid Office Equip

10 EPA Comm Office Equip.

EPA Homes/Home Services
0
1995 2000 2005 2010 2015 EPA Comm/Industrial

Source: LBNL Analysis, EPA Goals

ENERGY STAR is a Brand
What Does that Mean?

ƒ Complex relationship
emotional connections and functional benefits

ƒ Exists in the mind of consumer

ƒ Everything you do defines your brand:
-- products -- people -- communications
-- services and support -- website -- R&D
… the list goes on
The Brand
Products
Products

The
The
Employees
Employees The
The
Organization
Organization Customers
Customers
Communications
Communications
Loyalty is the Goal
Dependent on Performance and Management

Communications Performance

Differential
Awareness Relevance Satisfaction Loyalty
Value

Brand Management
Key Elements of ENERGY STAR
Brand Management

• Dialed up emotion with rational equity

speak to head AND heart
• Brand guidelines
for government and partners
• Consistent personality
• Consistent communications
• Co-branding platform
• Comprehensive monitoring
 Monitoring and Protecting Integrity
of ENERGY STAR
• EPA monitors use/protects integrity of brand
– Information on products and appropriate logo use required
– Routine checking of manufacturer submitted information
– Selective product testing
– Pulling from retail shelves – twice annually
– Customer calls
– Manufacturer information on competitors
– Designed supplemental testing program for problem areas -- lighting
products
– Track all advertisements (monthly)
– All printed press coverage (daily & monthly)
– Integrity Report – annually or biannually
– Insure correct use of mark: all violations dealt with; coord. with EPA’s OG

• Self-certification works
– competitive market place
– active consumer groups (Consumer Reports)
 Recent Report on
ENERGY STAR Brand

• Strong Brand
• History, Evolution,
Current Status
• Benchmarks
other brands, lessons learned

• Int’l Brand Expert

Interbrand

Interbrand, 2007
 ENERGY STAR is Strong Brand
Applied lessons learned from 1,000’s Brands:
• Brand tenants are serving ENERGY STAR well
and cannot be compromised
– Proven technology
– Carbon reductions
– Benefits reasonably immediate and measurable
– Protect the brand
• Moving forward
– Continue to carefully manage the brand
– Be consistent; protect brand definition
– Results must be tangible
– Remain customer driven
– Innovate to maintain momentum

Source: Interbrand, 2007

Outreach
Outreach is Critical to Results

• People must ACT to achieve

environmental benefit
• EPA devotes substantial
resources to outreach
• Recent results
– Awareness greater than 70%
– Strong understanding
– Media reach of 1 billion plus
per year
– 10 million web visits per year
Outreach Emphasizes Environment
Why talk about the environment?

• Americans are concerned

– 87% strongly agree or agree with the statement “I am very concerned about
the environment.”
– 93% strongly agree that “Saving energy helps the environment”
– 74% of consumers believe that a product that is better for the environment
is a somewhat to a very important consideration when purchasing an
appliance or an energy using product

• Create a long term connection for action

help to motivate change

• Emotional
The Time is Right
Energy Efficiency and Global Warming

• 82% of Americans believe in global warming,

and there is widespread belief that human behavior is contributing to
the problem.
Fox News/Opinion Dynamics Poll, Spring 2007

• Majority believe immediate action needed

NY Times/CBS Poll, April 2007

• 86% would choose one home over another

based on its energy efficiency.
Shelton Group/Energy Pulse, 2006

• 63% say change their consumption habits

based on increase in energy prices.
Shelton Group/Energy Pulse, 2006
 EPA Coordinates Outreach
• Broad
– PSA – profiles of real people
– ENERGY STAR Advice: energystar.gov/home
– ENERGY STAR Home Advisor: energystar.gov/homeadvisor
• Products
– Lighting -- ENERGY STAR Change a Light
– HVAC
– Office equipment
Multiple Goals
– Consumer electronics
– Commercial Food Service
Build Awareness
• New Homes
• Existing Homes Provide value to
– Web-based tools
program partners
• Commercial Buildings
– Sector-based challenges
Promote action
• Industrial
ENERGY STAR PSA Campaign:
Current Components
• :30 TV PSA
• 4 print PSAs
– 2 C&I, 1 Residential, 1 Special
• 2 minute video
ENERGY STAR PSA Campaign:
Print campaign

• Designed to work across

ENERGY STAR program
• People that act – in
profile
• Join the fight against
global warming
• Residential
• Commercial
• Available to Co-op
2007 Campaign
ENERGY STAR Change a Light
ENERGY STAR
Change a Light Day,
Oct. 3, 2007
•Turnkey materials
•20 day bus tour; 10 stops

Recent success:
•1.2 million+ pledges to date
•1,000+ participating organizations
•State leadership activity in nearly
every state
•30 proclamations of ENERGY
STAR Change a Light Day
Example: Web-based Tool
ENERGY STAR @ home

• Focal point for extending

ENERGY STAR’s market position
as a trusted source on energy savings information

• Broad range of “tips”

in addition to highlighting labeled products, (e.g.
wash full loads)

• Systematic selection and

documentation process
behind advice
• energystar.gov/home
Update on
ENERGY STAR Products
ENERGY STAR Uses Consistent
Criteria for Product Specifications
• Significant energy (GHG) savings
• Consumption/performance can be measured and
verified
• Maintain/enhanced performance
• Cost–effective, short paybacks
• No bias to one technology.
• Effective differentiation for consumers
• Strive for top 25% of product models (not sales)
but key criteria can trump that goal
Use Well-Documented, Transparent
Process
 ENERGY STAR in the US:
Grown to 50+ Product Categories
Office Home
Heating & Electronics Appliances
Equipment Clothes washers
Cooling Computers Battery chargers
Dishwashers
Central AC Monitors Cordless phones
Refrigerators
Heat pumps Printers Answering
Dehumidifiers
Boilers Copiers machines
Air cleaners
Furnaces Scanners TV/VCRs
Water coolers
Ceiling fans Fax machines DVD products
Room AC Multi-function Home audio
Ventilating fans devices External power
adapters
DTAs
Commercial
Food Service
Refrigerators
Lighting Home
Freezers
Fryers
CFLs Envelope
Residential light Home sealing
Steamers
fixtures Roof products
Vending
Exit signs Windows/Doors
machines
 Overview of New and Revised
Specifications
Product Cat. 2007 New/Revisions 2008 Revisions New in 2008
Imaging equipment -- 4 / 07 Imaging equipment (tier II) Servers
Office Computers – Jul 07 Computers (tier II) Data storage
Equipment Monitors Large scale routers
Digital TV Adapters –1 / 07 Televisions
Consumer Set-top boxes
Electronics External power adapters/
battery chargers
Decorative Light Strings 9/ 07
Lighting RLF – Sep 07

Commercial Dishwashers -- 10/ 07 Fryers (new sizes) Icemakers -- Jan 08

Refrigerators Freezers Ovens and Griddles
Food Service
Ventilation fans
HVAC Furnaces
Programmable thermostats
Roof Products – 12/07
Other Traffic signals/Transformers -
- 5 / 07 (suspended)
Vending machines -- 7/ 07
 Other Possibilities
The Candidate List
Revisions New Specs
• Boilers • Non-Ducted AC
• Ceiling fan light kits (aka mini-splits)
• Water coolers • Heat Recovery ventilators
• Audio/DVD • Microwaves
• Hand dryers
Will monitor market • Comm Clothes Washers
penetration, update or • Soft Serve Machines
develop new scoping
papers to assess feasibility, • Autoclaves/Sterilizers
potential energy savings,
etc
Result: Product Sales Growing
Update on
ENERGY STAR New Homes
and Home Improvement
ENERGY STAR New Homes

• About 850,000 homes

~12 % market share

• 25 cities/states > 20% market

pen.
• 5,000+ builder partners
• New spec in 2007
• More High growth markets:
Salt Lake City, North Carolina, Denver, Atlanta, and
Pacific Northwest
ENERGY STAR New Homes
2007/08 Activities

• Expand Multi-Family High Rise Pilot

20% > ASHRAE 90.1
• Annual sponsor meeting
Develop national strategy for M&E

• Promote carbon neutral home

Link with Climate Technology Initiative

• Expand efforts in affordable housing

BOPs and Outreach to State Housing Agencies

• Launch “Designed to be ENERGY STAR”

Existing Homes
Home Performance with ENERGY STAR
• Expands ENERGY STAR to a service
– Beyond products to home envelope and HVAC systems
– Trained contractors and QA/QC

• Home Performance with ENERGY STAR

– 36,000+ Retrofits to Date
– Average savings of 20 % per household

• More than 20 Regional Sponsors overseeing

programs
• Continued Support for BPI (EPA, DOE, HUD)
– More than 700 participating contractors and growing
Existing Homes
Other Efforts

• ES HVAC Quality Installation

– Completing pilots with SCE and Oncor to collect cost data and test
verification procedures
– Proposed proper HVAC installation program Fall 07 with CEE/ACCA
– Launch in Spring 08
– Provide program best practices and contractor training
– HVAC maintenance campaign in 2008

• Seal & Insulate w/ENERGY STAR

– New graphic for insulation man./retailers
– Spanish language Do-It-Yourself Guide
Update on
ENERGY STAR in the
Commercial and Industrial Sector
Commercial Sector Approach
• Leadership in the market place
– energy efficiency leadership

• Whole Building Performance

– promote integration of systems
– about energy savings -- not presence of new technology
– achieve twice the savings for a given investment

• Performance Measurement System

– can not manage what you can not measure
– fix missing market information
• how to measure efficiency / performance
• when is a building efficient
– provide information linked to real market transactions (like energy
bills)
Commercial Buildings Outreach:
ENERGY STAR 10% Challenge
• Improve buildings by 10% or more
• Has grown to more than 500 participants
• Key first step – assess building efficiency
using standardized measurement system
• Cannot manage what you can not measure
• Galvanizing many end users, states, associations
Commercial Buildings:
Program Growth

• Building benchmarking being used as

energy management/ investment tool
– About 8 billion sf of commercial space rated
– 10,000+ schools
– Rated buildings doubled in 2007 to 60,000
• 4,000+ buildings earn ENERGY STAR
Commercial Buildings:
2007 Update
• Energy Performance Ratings
– Expand ratings to new markets:
• Big Box Retail - Oct 2007
• Wastewater Treatment Plants - Oct 2007
– Update existing ratings with new data:
• office building rating released Oct. 1
– Capturing environmental benefits/profile of buildings:
• Portfolio Manager incorporates emissions from EGRID
• California Benchmarking Initiative
– PG&E automated utility bill transfer successful, expanded
– Model for national implementation
Commercial Buildings
Partner Initiatives
BOMA
• BEEP first year launch trained 5,000 building owners/managers
• Challenges members to 30% reductions measured w/EPA rating.
• BOMA Locals launching ES initiatives (Portland, Seattle, Austin)

CoStar
• Comm. real estate listing service
• Highlights buildings earning ES
• Next step: All CoStar listings to provide ES performance rating

Local Governments
• U.S. Conf. of Mayors (USCM) and National Assoc. of Counties
(NACo)
• Unanimous Support for ES Challenge
Commercial Buildings
Energy and Water Update
• ENERGY STAR Water and Wastewater Focus
– Benchmarking tools and energy efficiency best practice guides
completed by October 1, 2007

• Water tracking in Portfolio Manager (PM)

– Added in June 2006
– More than 1,500 PM users tracking water use
– More than 10,000 water meters

• New ES specs for products using energy and

water
– Commercial dishwashers
– Ice Makers
 Industrial Program
• Grown to include focus on 11 industrial sectors
– Peer exchange
– Sector-specific barriers and opportunities
• ENERGY STAR label available in four sectors
– auto assembly,
– cement, and
– wet corn milling plants
– petroleum refining
• Will add two new industries each year
– fiberglass and cereal production in 2007
• Will continue to develop/promote key enabling tools
– Assessment matrix
– Teaming Guide
– Energy Strategy report: “Energy Strategy for the
Road Ahead” to prepare business executives for
energy future:
C&I Focus for 2008
• Broaden the ENERGY STAR Challenge
– Reach new associations
– Target 10-15 priority cities to serve as model cities to implement Challenge

• Revise/Expand EPA’s energy performance ratings

– Update existing ratings (schools, supermarkets, hotels)
– Address data centers

• Build the market for energy efficiency services

– Continue to engage energy service providers, utilities, state energy programs
– Challenge architects to design buildings that will earn the ENERGY STAR.

• Cont. easy link carbon emissions/reductions w/ES

• Make it easy to assess energy use on a cont. basis
• Leverage 70%+ brand awareness in C&I market
ENERGY STAR becomes the brand to look for at home and work
 ENERGY STAR
Goals for the future
• Triple carbon savings by 2012 (from 2000).
From 16 MMTCE to over 50

• Build consumer ‘brand’ awareness and loyalty

• Motivate consumers and build demand
• Maintain meaning/integrity on full suite of products
– Quality, cost-effective, relevance

• Enhance partnership with utilities and EEPS

• Reduce costs of assisting partners to expand
– Need to manage more products; builders/new homes; commercial/industrial partners

• Build home improvement – beyond products

– Duct sealing, home sealing, whole home performance are big opportunities

• Transform C&I approaches

– Whole building approach, many building types, industrial
Using the ENERGY STAR Platform
• ENERGY STAR label for products/homes
– Broadly relevant, well-proven technologies
– Meet brand principles
• ENERGY STAR Save More
– Broadly available and well-proven
– But high first costs
• Energy and Water Linkages
– Joint energy and water utilities meeting - March 2008
– Pursuing jointly promoting energy and water efficiency in
• Residential appliances
• New homes
• Home retrofit/ audit programs
• Commercial Kitchens
• Advanced Technologies
– Exploring how to leverage ENERGY STAR infrastructure to help address market
barriers
– Inappropriate to use ENERGY STAR ‘Brand’
Let’s Work Together

• ENERGY STAR is powerful and

successful platform
• Government credibility
• Many opportunities for greater energy
and greenhouse gas savings

THANK YOU!